If you’re in the process of purchasing a new home, you may find the process to be a bit intimidating. Because of all the legal and financial paperwork, the process of buying a home can seem a bit overwhelming even if you’ve done it before. That’s why it’s important to have a team of seasoned professionals behind you throughout the process.


At Liberty Title in Minnesota, helping homeowners through the closing process is what we do. We work hard to make the closing process go as smoothly as possible while at the same time making sure you understand everything that’s happening. That’s why we’ve put together this helpful guide to everything you should know about your mortgage at closing.


1.      You can refinance anytime you want down the road.

If you’re purchasing a home at a higher mortgage rate than you’d prefer, remember it’s possible to refinance your home at any time. You may also be able to refinance so that you’ll be able to pay off some debt or pay for remodeling projects to your home. If you’re interested in refinancing in the future, our title closing agents can help with that as well.


2.      PITI is the total monthly sum.

First-time buyers are often thrown by some of the terminology used during the closing process. One term that you may hear is “PITI,” pronounced like the word pity. Your PITI is an acronym which stands for the total monthly sum of your mortgage including your principal, interest, taxes, and insurance.


3.      A mortgage won’t hurt your credit.

First-time buyers may be worried that adding hundreds of thousands of dollars to the amount they owe on a mortgage could damage their credit. But there’s no need to be concerned. A mortgage is considered a good credit line because it demonstrates that you are able to make a monthly payment on your home and you own property to back up any debts. In fact, in most cases, a mortgage typically has a positive impact on one’s credit.


4.      Better credit means better rates.

If you’re getting ready to take out a mortgage, it’s a good idea to get a handle on your credit. Get a copy of your credit report and pay off any outstanding debts. The better your credit, the lower your mortgage rates will be, which means more money in your pocket.


5.      Your spouse’s credit score affects your mortgage.

If you’re buying a home with your spouse, you’ll need to decide if you should put both of your names on the mortgage application. You might assume that one partner’s good credit could cancel out the other partner’s poor credit, but that’s not always the case. Lenders average the lowest middle score from both borrowers, so if your spouse has less than ideal credit, consider taking the time to improve his or her score before applying for a loan.


Minnesota Title Closing Company

Buying a home is exciting and rewarding, but it can also be a learning process. Whether you’re in the process of purchasing your first home or you’ve been through the process before, our title closing agents can the closing process smooth and simple.


We’ll sit down with you and answer all of your questions so you can rest easy. Call our title closing agents to schedule your closing at 763.494.0340, or contact us to learn more about how we can help you get into your new home.